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American Morning
Suspect's "Underwear Bomb"; Yemen Al Qaeda Threat to U.S.; Companies Expect to Raise Salaries in 2010; Rehabilitation of Terrorists in Guantanamo Bay
Aired December 29, 2009 - 08:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(COMMERCIAL BREAK)
KIRAN CHETRY, CNN ANCHOR: Good morning. Welcome to AMERICAN MORNING. It is Tuesday, December 29th. I'm Kiran Chetry.
JOHN ROBERTS, CNN ANCHOR: Good morning to you. I'm John Roberts. Thanks for being with us.
Here are the big stories we'll be telling you about in the next 15 minutes.
They are images of terror. This morning we are getting a first look at pictures showing the crude bomb that federal investigators say could have brought Northwest Airlines Flight 253 to a tragic end, a bomb sewn in to underwear that could have blown a hole on the side of the plane. The very latest -- just ahead.
CHETRY: Plus, al Qaeda is claiming credit. A branch of the terror group in Yemen is calling Umar Farouk Abdulmutallab a hero. The group is also bragging that its, quote, "advanced bomb" passed through U.S. airport security.
Well, is Yemen the next front in the war against al Qaeda? Barbara Starr with new information from the Pentagon.
ROBERTS: Two members of that terror group are reportedly released from Guantanamo into a rehab program for terrorist in Saudi Arabia. But can terrorists be rehabilitated? That highly-charged debate -- ahead.
CHETRY: First, though, images of terror from the FBI. The Feds say that Umar Farouk Abdulmutallab used this pair of underwear to smuggle explosives onto Flight 253 on Christmas Day. The big worry, it was never detected by airport security. A federal report obtained by CNN says the 23-year-old Nigerian claims that he got the bomb in Yemen along with instructions on how to detonate it.
And a branch of al Qaeda in Yemen says it is behind the plot.
Our Jeanne Meserve is breaking it all down for us this morning.
(BEGIN VIDEOTAPE)
JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: John and Kiran, when you see this bomb, you will see how even a pat-down might have missed it.
(voice-over): These pictures from an FBI bullet obtained by CNN shows 76 grams of PETN in an anatomically-shaped sheet tucked into pocket stitched into underwear. It was allegedly worn by Umar Farouk Abdulmutallab to avoid detection during screening. There is scorching from the attempt to set off the bomb and one photo shows the triggering device, a melted syringe with plastic film-like material and tape. Preliminary analysis indicates it contained ethylene glycol, an ingredient in coolants and antifreeze.
A claim of responsibility from al Qaeda in the Arabian Peninsula called it an advanced bomb and touted the fact that it defeated American security.
A U.S. counterterrorism official says the statement appears to be authentic and it seems credible that the group had some involvement in the attempted attack. The government of Yemen where the al Qaeda affiliate operates says Abdulmutallab visited the country at least twice, once four or five years ago and again from last August to early December.
FRAN TOWNSEND, CNN NATIONAL SECURITY CONTRIBUTOR: You do worry the next time the lesson they'll take from this is, next time, what we need is two or three guys on each plane and several planes so that we can have some assurance at least one of them does blow up. And so, I'm not sure I would take a whole lot of comfort from it.
MESERVE: U.S. officials say the alarm raised by Abdulmutallab's father more than a month ago was not specific or credible enough to put the young Nigerian on a terror watch list. But critics say there was a failure to connect the dots, including his use of cash to purchase a one-way ticket, that he didn't check luggage, and perhaps most importantly, the British decision to deny him a new visa last May.
RANDY LARSEN, THE INSTITUTE FOR HOMELAND SECURITY: I just don't believe that we'll ever have a scenario where we'll get more advanced warning of an attack on America. It's hard to imagine that this will happen, and yet, we failed to put that information together.
MESERVE (on camera): al Qaeda in the Arabian Peninsula says the attempted attack was retaliation for an alleged U.S. attack against terror targets in Yemen. Two prisoners released during the Bush administration from the Guantanamo Bay detention facility are among that group's leaders. But counterterrorism officials say they are still investigating just how tightly-linked that organization is with the attempted bombing.
John and Kiran, back to you.
(END VIDEOTAPE)
ROBERTS: Jeanne Meserve this morning -- Jeanne, thanks.
This is not the first time that the al Qaeda group in Yemen has threatened the United States. In fact, two of its leaders were once prisoners at Guantanamo Bay in Cuba. On "LARRY KING," homeland security chief -- former homeland security chief, Tom Ridge, said this is an example of why some people should be incarcerated forever.
(BEGIN VIDEO CLIP, CNN'S LARRY KING LIVE)
TOM RIDGE, FMR. HOMELAND SECURITY SECRETARY: I take a look at this individual who's been charged criminally. Does that mean he's going to get his Miranda warnings? Does that mean the only kind of information we're going to get from him is if he volunteers it?
He's not a citizen of this country. He is a terrorist. I don't think he deserves the full range of criminal -- protections of our criminal justice system as embodied in the Constitution of the United States.
(END VIDEO CLIP)
ROBERTS: Ridge also said that he is not surprised that we end up killing former Guantanamo Bay detainees on the battlefield.
CHETRY: Well, a branch of al Qaeda in Yemen, as we just heard from Jeanne Meserve, is claiming responsibility for the attack, saying it's revenge for U.S. strikes on Yemeni soil. So, should the U.S. have paid more attention of what's quickly becoming a growing haven for terrorists?
Barbara Starr joins us right now from the Pentagon with more.
And you talk to very -- people very high up in the military who told you months and perhaps even years back that this is something we needed to watch.
BARBARA STARR, CNN PENTAGON CORRESPONDENT: You know, Kiran, senior U.S. military officials and administration officials say they have been watching Yemen and al Qaeda in Yemen for years. We know that there have been attacks -- the USS Cole, attacks like that. But it all really reached critical mass earlier this year, when it became very clear that al Qaeda had established a new headquarters in Yemen, and that people were assembling there.
General David Petraeus, the head of the U.S. Central Command and John Brennan, President Obama's top counterterrorism adviser, warned the Yemeni president earlier this year, in the summer, that he had a crisis on his hands and that al Qaeda was targeting his own inner circle of people. By all accounts that is when the Yemen president turned around and began to accept U.S. help. There is now basically a secret war in Yemen. The U.S. is funding weapons, training and providing intelligence to Yemeni forces to get them to go after these al Qaeda targets, Kiran.
STARR: And as we heard in the panel that John had in the last hour, a lot of problems in Yemen. I mean, the poverty level, how many people there are living in poverty, as well as local clashes that are going on in other parts of the country. I mean -- is Yemen basically at risk of the government collapsing and having it become a safe haven for al Qaeda? STARR: That is the bottom line concern. It's exactly what you just said. There are rebel and separatists movements both in the north and the south of Yemen. The central government doesn't even control the whole country. They tried but they can't.
Oil prices have dropped as we know, and that is what has been funding Yemen's government and funding their own military. So, they have severe budget cuts to even go after al Qaeda. And it might be interesting to note, there is a severe water shortage in Yemen, and that's the kind of thing that also is hurting the economy there and fueling some of the poverty and discontent -- Kiran.
CHETRY: Barbara Starr for us this morning from the Pentagon -- thank you.
ROBERTS: Also new this morning. Israeli Prime Minister Benjamin Netanyahu is heading to Egypt to discuss the possibility of re- launching peace efforts with Palestine leaders. The move is getting the green light from the White House. Netanyahu and Egyptian President Hosni Mubarak are also expected to talk about the possibility of swapping hundreds of Palestinian prisoners for an Israeli soldier who has been held in Gaza for 3 1/2 years now.
CHETRY: North Korea says it has detained an American who entered the country illegally last week, believed to be 28-year-old Robert Park, Korean-American Christian missionary from Arizona. Fellow activists say that Park crossed the border from China on Christmas Day, carrying letters, calling on North Korea to end its human rights abuses.
Well, it's eight minutes past the hour right now. Let's check in with Jacqui Jeras. She's got a quick look at the weather for us.
And, boy, Texas is bracing for another ice and storm, and snow storm, as well as a lot of wind and cold in other parts of the country.
JACQUI JERAS, CNN METEOROLOGIST: Yes. I know. These winds are just brutal today, guys. And you have my permission to whine about the weather in the northeast today, because it is just nasty. We're talking gusts up to 50 miles per hour easy.
The snow, not so bad today, but we're still dealing with those lake effect conditions as that cold air blows over those warmer lake waters, so lake-effect snow advisories and warnings remain in effect. Several more inches can be expected today and those winds will cause whiteout conditions at times.
Delays at the airports are expected due to those winds. Fifteen- minute departure delays already in Newark. Expect more throughout the northeastern corridor throughout the day -- John and Kiran.
ROBERTS: Jacqui, looking forward to more from you a little bit later on this hour. Appreciate that. Thanks so much.
So, when some detainees are released from Guantanamo Bay, they go through a program in Saudi Arabia that rehabilitates -- that's the claim -- former terrorists. But does it really work? Well, it might have a 90 percent success rate according to some studies, but that also means that it's got a 10 percent failure rate. And some of those former detainees are ending back on the battlefield.
We'll tell you about that coming right up. It's nine minutes after the hour.
(COMMERCIAL BREAK)
ROBERTS: Welcome back to the Most News in the Morning. It's 11 1/2 minutes after the hour. That means it's time for an A.M. original.
But, first, new this morning...
CHETRY: The crackdown in Iran continues after Sunday's deadly protest. Hardliners in parliament are demanding no mercy. These activist Web sites report eight prominent opposition figures are now in custody. And at least 300 have been arrested. Iranian authorities say they are holding the bodies of five protesters, preventing their funerals, including the nephew of the opposition leader, Mir Hossein Mousavi.
ROBERTS: Russian is saying it needs more offense to counter our missile defense. According to Russian media, Prime Minister Vladimir Putin says Russia must develop weapons to preserve the balance of power, so the United States will not feel fully secure. President Obama scrapped plans for a missile defense shield in Eastern Europe back in September that Russia considered a threat to its security.
CHETRY: Another officer killed in the line of duty in Washington State. Pierce County Sheriff's deputy, Kent Mundell, wounded in the shootout on December 21st along with his partner. He was taken off of life support. Police say the gunman who was killed in the shootout as well was drunk and had a history of domestic violence. Mundell was now the sixth officer in the Seattle area to die in the line of duty over the past four months.
ROBERTS: They just did not see it coming. Many family members and friends of the man accused of trying to blow up a plane with nearly 300 people onboard are simply stunned by the news.
Our Mary Snow caught up with an old classmate of Umar Farouk Abdulmutallab, who remembers a, quote, "peaceful person."
(BEGIN VIDEOTAPE)
MARY SNOW, CNN CORRESPONDENT: John and Kiran, as the world learns more about Umar Farouk Abdulmutallab as the man accused of plotting to blow up an airliner, one former schoolmate now living in the U.S. remembers his old friend from middle school and high school very differently.
(voice-over): Efemena Mokedi is having a hard time making sense of how his former schoolmate, Umar Farouk Abdulmutallab, could now be a suspected terrorists. Mokedi who is from Nigeria is seen here as a student. He went to the same school as Abdulmutallab in the west African nation of Togo.
(on camera): When you heard this news, what's your reaction?
EFEMENA MOKEDI, FORMER CLASSMATE OF ABDULMUTALAB: I was shocked, and I was surprised, and I did not believe it at first, until I saw the images which showed that this was the student I went to school -- this was the student I went to school with. So, once I saw that, I -- you know, I was like, man, this is unbelievable. This is out of this world, you know? I never would have guessed, you know?
SNOW: What was he like?
MOKEDI: He was a peaceful person, you know, and was friendly person, sociable. And someone, if you had a problem, you can always go and sought to. You know, and he was always wanted to help students, and a lot of teachers in the school also liked him because he was an intelligent kid.
SNOW: Was he a religious kid?
MOKEDI: He was very -- he was a devoted religious person. He -- you know, he worshipped -- religion was one of key aspects of his life. And he was someone that, you know, always prayed and, you know, followed the traditions of his religion.
SNOW: Was there anything that ever talked about that made you think that he was somewhat of a radical at all?
MOKEDI: Nope, never.
SNOW (voice-over): Mokedi, who is 20, says he last saw Abdulmutallab in 2007, when Mokedi left Nigeria to come to the U.S. He describes the boarding school he attended with Abdulmutallab in Togo as a small elite school.
He says while the two mostly talked about basketball, they sometimes did discuss religion. Mokedi is a Christian and says he did ask Abdulmutallab questions about negative perceptions about Islam.
MOKATY: What we saw on TV was that people were portraying them as bad people, and you know, that's what led me to the curiosity to talk to him, and I asked him, is it true, and he said no. You don't see me coming to school with a bomb or something. No, it is always peace, that's what the main philosophy is about Islam.
SNOW: Mokaty says in the last few days, he has been keeping in touch with former schoolmate on Facebook.
MOKATY: They are all shocked. Some of them are terrified, some of them don't want to talk about it and some of them are like, I can't believe it. Some of them are like, wow, this is unbelievable. Some of them said, you know, I personally, do not want to believe it.
SNOW: Mokaty says he last saw Abdulmutallab in 2007 and never kept in touch with him after that. John and Kiran.
CHETRY: Mary Snow for us this morning, thank you. Well, Stephanie Elam is going to be "Minding Your Business" in just a moment. She is going to show us some of the top jobs that will see a raise in 2010. It's sixteen minutes past the hour.
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CHETRY: Welcome back to the Most News in the Morning. Eighteen minutes past the hour. That means it's time for "Minding Your Business". But some other stories new this morning first.
ROBERTS: Is this the end of free TV? Analysts say the four major broadcast networks may go completely cable, because the business model adopted sixty years ago is unraveling. The big four are losing ad revenue dollars because of the recession and competition from cable and the web. FOX right now is in a fight with Time Warner cable demanding higher fees, and threatening to pull shows starting on Friday.
CHETRY: We are waiting for what could be a nice shot in the arm for the housing market. This morning, a new report on home prices is expected to show a slight increase in October, and that would be the fifth straight month of gains.
ROBERTS: Meantime, Stephanie Elam here "Minding Your Business" and she is looking at some of the top jobs where you can expect a pay increase next year. Good morning to you.
STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Good morning.
Yes, this is good news, because 2009 and 2008 were really painful years for people who were just dealing with such an awful jobs market. And if you take a look at 85 percent of companies going ahead and just cutting, just going ahead and cutting their annual merit races for 2009, you can see that things may change a bit in 2010, because 54 percent of companies plan to actually thaw their salary freezes, bring them back in line to perhaps where they were before, and 35 percent of companies are planning to restore their 401(k) matches. And 70 percent of those companies are saying they will go back to their original levels of those 401(k) matches which a lot of people who had devastated investment portfolios over the last couple years, this is good news for them, obviously.
Now what causes this change? 40 percent of companies say that their financial situation they believe will be better next year or not get any worse, and so because of that they feel they can make things better for their employees.
So let's take look at some of the people who are going to find that their jobs are in demand. These skills are going to be the ones that are going to move next year. We are just going to take a look at five of them. But, if you want to see all 10, you can go to CNNMoney.com.
Tax accountants. That is a good place to start. Compliance directive, people need to make sure that regulations and accounting rules are being met. Information systems security manager. Security is just a big topic lately, so let me get that one. Medical records clerk. There is just so much data that has to be moved. That one is going to be needed and people are not going to stop needing doctors and medical attention. And executive assistants as well, another job that will be in demand and paying better in 2010. So, if you want to read more about this and also perhaps the salary increases, what you are going to be making, CNNMoney has a really great write on that and five other jobs that are looking to make more money in the New Year.
ROBERTS: How about business correspondent?
ELAM: Yes, hopefully that one is stable and steady, right?
CHETRY: Thank you, Stephanie.
ROBERTS: Thank you so much.
ELAM: Sure.
ROBERTS: Controversy in programs to rehabilitate former detainees at Guantanamo bay. Does it really work? We will ask those questions coming right up. 21 minutes after the hour.
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ROBERTS: 24 minutes after the hour. A report says two leaders of the Yemen terror cell that trained the Christmas day bombing suspect were released from Guantanamo bay prison in 2007. They apparently went through a highly-scrutinized Saudi program which claims to rehabilitate former terrorists. Christopher Boucek with the Carnegie Endowment for International Peace joins us this morning to talk more about this because he has been looking into it. This has been called, Christopher, this is called jihad's anonymous, after alcoholic's anonymous.
How does it work?
CHRISTOPHER BOUCEK, CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE: Well, it works through several components. The first is intensive religious discussion and debate, and that's supplemented with extensive social support. So your family, while you are in custody, is given a salary, and a car, and other things to help offset the hardships of your being incarcerated. And then when you get released, there is a message delivered to your family that they are responsible for your behavior, so that if you get in trouble again, your family will be held responsible.
ROBERTS: So, 117 men, returned from Guantanamo bay, the detention center, have ended up, well, have gone through this program. Of those 11 have returned to Saudi Arabia's most-wanted terror list. It's a 90 percent success rate. But it's also a 10 percent failure rate.
And when you are dealing with people who are this potentially dangerous, can a 10 percent failure rate be accepted? BOUCEK: Well, I think, 10 percent, in perspective, probably sounds like a lot when you are dealing with people who have been in custody that you are releasing. However, every time you get someone to not do what they would have been doing otherwise, it should be viewed as a success. And when you compare rehabilitation in Saudi Arabia with other programs, say with a Federal prison in this country or mental health facility, the rates are much worse. So, clearly there needs to be more work.
ROBERTS: As we said, there were a couple of people who were in the leadership position in al Qaeda have gone through this program. One of them is Sayed Al Shireh, he went through an art therapy program in Saudi Arabia. As we said, now in a leadership in al Qaeda in the Arabian Peninsula, may have, we have to acknowledge that there is no direct connection here, and he may have had some hand in what Umar Farouk Abdulmutallab was alleged to have done.
I mean, when we talk about failure, even though as you said, if you can stop anybody from committing an act of terrorism, it's a good thing. But, does this raise questions about the program's effectiveness.
BOUCEK: I think this highlights the need for more intensive programs like this. And basically, when we talk about these programs, there is a desire to call them, reeducation, or deprogramming. In actuality, that is not what you are doing. You are not necessarily changing someone's beliefs. But these programs are probably best understood as some sort of a risk mitigation program. Every time you release someone from custody, there is a risk involved with their release, so what you to do is you want to create circumstances to lessen the likelihood that they will return to violence.
ROBERTS: One unnamed American official gave a quote to ABC about these rehabilitation programs, calling them a joke that quote, "gives detainees paints and crayons as part of the rehabilitation regiment." Can you tell us more about this art therapy rehabilitation program? How does it use work to try to convince people to give up Islamic fundamentalism?
BOUCEK: So, the art therapy is a component that is used in connection with a bunch of other components, like the religious discussion, the debate, the dialogue, and basically, art therapy is used the same way that it is used in hospitals or in other custodial treatment situations. It is trying to get these young men to try to express themselves in other ways. So, it might not be so much about the art therapy, it is about learning to come to terms with what their circumstances and what they have gone through. So, in a country like Saudi Arabia where there is no public art, the fact that you are engaging in art therapy is pretty remarkable. And I think when we are talking about the success of these programs, we need to keep in mind that this is not a silver bullet. There are many people who will never be rehabilitated and who do not want to be rehabilitated. So, these programs are actually targeted at the people who are looking for a way to change.
ROBERTS: John Horegon is in charge of the Penn State University's International Center for the Study of Terrorism. He is also got an upcoming book, due out February, called "Walking Away from Terrorism". He studied these rehabilitation programs. I believe you are familiar with him. He says that many detainees simply do and say what it takes to get a quick release back into the community. He says, we have quote, "very, very, very little evidence to suggest that these programs work in the ways that are being claimed."
Does he have a point?
BOUCEK: I think John has a really good point. And I think one of the things that is really important is that we need for risk assessment programs, and risk assessment processes to help determine when to let someone out of a program like this.
So there are programs to deal with deciding when you would let rapists or a murderer or a pedophile out of prison, but we don't have the tools to assess someone's propensity to engage in political violence. And this is a real urgent need. We need these tools to help understand when you would let a terrorist out of custody. Because right now it's very, very subjective.
ROBERTS: At present there are close to 100 detainees at Guantanamo bay, some of whom may be up for release in the not too distant future. Should this incident cause officials to rethink the release of any Yemeni detainees back into society?
BOUCEK: Well, I think, you know, there was a group which was sent back, a week or two ago. And there are about 93 or so Yemeni detainees still held at Guantanamo. Of those, maybe 40 or 50 originally were thought to be released. However, I cannot think of any American official who would want to be involved in releasing detainees back into Yemen, until there is some sort of a program in Yemen to help facilitate their reintegration and their return. There is a big concern that people being sent back to Yemen are going to return to militancy. And there needs to be a program to help offset that.
ROBERTS: Christopher Boucek from the Carnegie Endowment for Peace, good to talk to you.
Thank you so much for joining us this morning.
BOUCEK: Thank you very much.
CHETRY: Well, it's 29 minutes past the hour. We check our top stories. Authorities say the number of dead from a suicide attack in Karachi, Pakistan is now up to forty people this morning. The targeted, the killer targeted thousands in a Shiite procession. Worshipers were commemorating a major religious holiday. No one has claimed responsibility for the attack.
ROBERTS: Iran's bloody crackdown continues as hard liners and parliament demand no mercy for opposition leaders. Activist websites reporting that eight opposition figures are now in custody. Meanwhile, Iran's state news agency accusing anti-government terror teams of killing protesters to create sympathy for their cause. At least eight people died in Sunday's protest.
CHETRY: And we are getting word that Somali pirates have taken over two vessels. The International Maritime says one of them, a British flag chemical tanker called the Saint James Park has at least twenty-three crew members on board. Pirates also taking over a second vessel flying a Panamanian flag. It was carrying 19 crew members.
When it comes to the economy, a lot of us are happy to be rid of 2009 -- the mortgage crisis, a recession, a stimulus. What worked and what didn't and what can we learn from all of it heading into 2010?
Joining us from the "A.M. Breakdown," the author of "House of Cards" and contributor to "Fortune" and "The Daily Beast, Bill Cohan. Thanks for being with us this morning. Also we have with us investment adviser Ryan Mac. He is also the president of Optimum Capital Management. Ryan, good to see you as well.
As we close out the year guys, let's start with the good news, and that's that no one is saying we're in a depression anymore, but when it comes to bad news, we are still dealing with the unemployment rates and the foreclosures. Let me start with you, William. Give us a status check as we head into 2010.
WILLIAM COHAN, AUTHOR, "HOUSE OF CARDS": Well, Karen, you have the tourniquet being applied to the bloody gash, and it has effectively stanched the bleeding. But have we fixed the underlying causes that caused this problem in the first place, and unfortunately I don't think we have done that.
You cited unemployment, foreclosures. You could have cited commercial real estate or the failure to lend to small businesses that the president has been urging on Wall Street bankers that has not happened yet.
These are problems, to say nothing of Wall Street compensation practices, that have yet to be fixed, Kiran.
So the good news is the policies of the end of the Bush administration and the beginning of the Obama administration have stanched the bleeding, but the bad news is we have not fixed the underlying problems, which is a real lost opportunity in my opinion.
CHETRY: And Ryan, as we head into 2010, and let's focus for a minute on what William was saying when it comes to the big banks and that they were deemed too big to fail, given infusions to the tune of billions of dollars. Now they are on solid footing and can pay big bonuses, but there really has been no movement on regulation.
Did we already miss that boat or in 2010 can we look to more regulation when it comes to the big banks?
RYAN MACK, INVESTMENT ADVISER: I definitely feel there is a lot of room for additional regulation to be given. If you look at the house legislation that was passed in the beginning of December, it had almost a missing of the global derivative market of almost $600 trillion that still has yet to be regulated. That was one of the largest causes of the disaster.
I do think it has a lot further to go. But the Obama administration and what they have done, the bigger picture, the housing market has stabilized and the U.S. economy and the stock market has rebounded. The GDP has shown the economy is expanding again.
But again I do have to agree with Bill that a lot of the underlying causes still need to be worked on, and it seems that we have to go back and forth between what the lobbyists want and what the people need.
We need to be more in tune for what the people are looking for, and that is a little bit more fair regulation, how the money was given out and how the money was given to GM and Chrysler and Ford. Essentially, that's how we should have given the money with more strings attached to Wall Street as well, so more fair and balanced going forward.
CHETRY: That's an interesting comparison as well, William, and we know a lot of this happened so quickly and a lot of this happened behind closed doors, but leaving the banks alone for a minute. When it comes to unemployment, what do we do to get a handle on the double digit unemployment that we are still facing in December of '09?
COHAN: Kiran, so much of unemployment in this country is driven by small businesses needing to expand, creation of new businesses that get capital to build, whether it's solar power or other energy-related fields that need to build and grow.
And those small businesses, those new startup businesses are not getting the capital that they need in the kinds of amounts that would really make a difference.
And we have millions of small businesses in this country. Yes, the big businesses and the AAA companies, they will get plenty of capital. But it's these small businesses that create so many jobs on a granular basis are not getting the capital that they need. That's why the Obama administration is pushing the bankers to do that.
They have to be careful because they don't want them to make bad loans, which is part of what got us in trouble in the first place, but we need to sort of unleash this power in the country to create jobs by getting capital where it's needed, and that's not happening at the moment.
CHETRY: Ryan, what do you think the solution to that is as well when it comes to lending, but of course making sure, as William said, it's not getting us back to what started the problem, which was risky lending and risk taking on the part of the banks?
MACK: In the ideal world, a lot of the funds that the taxpayers gave to support these banks would have been given out to lend. I don't want them to continue with the irresponsible lending that was done in the past, but I do think some additional lending is merited. In 2010 I am actually looking for seeds of greatness to be planted by the American people. I'm looking for the continuation of the community college being overflowed with individuals getting trained, educated, and certified with additional skills.
We were just in the Otisville facility, a prison. They have a solar panel plant in which the prisoners are building solar panels so a lot of individuals and prisoners and everybody alike are building solar panel and getting to this expansive industry. So they are learning new industries.
Facebook, CNN, "Sports Illustrated," all of these companies were spawned from a depression, a recession. I think people are starting to understand that. Productivity levels are higher because companies are learning to work on skeleton crews.
So the jobs are going to have to come from the American people who are saying if I don't have a job, I have to create a job. I am not going to wait for my ship to come in. I'm going to swim out to it and create something for myself. That's what's going to happen in 2010.
CHETRY: All right, a lot of people are hoping that we see things turn around for the better and quickly, especially when it comes to unemployment. William Cohan as well as Ryan Mac, thanks to both of you for your input this morning.
COHAN: Thank you.
MACK: Thank you.
ROBERTS: Don't like your bank? Gerri Willis is coming up next to tell you how you can get even. Stay with us. It's 36 minutes after the hour.
(COMMERCIAL BREAK)
ROBERTS: Welcome back to the Most News in the Morning.
CHETRY: Gerri Willis joins us now with today's financial resolution. Hey, Gerri.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Good morning, it's good to see you guys.
There is an option out there a lot of people don't think about that have the same services as a bank. A savings account, for example, at a credit union will yield you about 0.41 percent, and at banks they're getting less than 0.3 percent. It doesn't sound like a lot of money, but over time -- the return is better. You might as well go with the people who are willing to pay.
CHETRY: It's better than your mattress, John.
(LAUGHTER)
ROBERTS: Not much better.
WILLIS: On a one year CD a credit union will give 1.45 percent and a bank is going to give you 1.15. We have all seen how bad the savings are.
The mortgage rates are pretty similar, and they are not all that different when you look at 30-fixed rates.
ROBERTS: I am just marveling at the disparity between what they give you and what you have to give them.
WILLIS: We're not happy with anybody in this category, right? But I am trying to give people a little help here if you are really frustrated with your bank.
CHETRY: But put this in perspective -- give percent? Imagine, that's very low to try to borrow money to get a house.
WILLIS: That's right. Yes, it's a great rate. But when it comes to your savings, I think the credit union scores higher.
They're not perfect. Some of them have gone out of business, too. We have seen banks going out of business during the recession -- 23 credit unions have gone out of business as well and shut down. And there are membership fees, $25 a year if you're going to join a credit union, so you do pay a little bit for the service.
ROBERTS: Right. Are credit cards from credit unions a better deal than then are from the banks?
WILLIS: They can be, actually.
I want to show you some information from Pew Charitable Trusts. They show that interest rates are 20 percent lower on credit union credit cards then on bank cards.
Over the limit fees are $19 lower than at banks. Penalty APR, 18 percent versus 29 percent at banks. And 25 percent of credit union cards charge a fee to transfer to balance to another card compared to 88.
To find out if you are eligible go to creditunionco-op.com. I think people get a better deal from the credit unions because they are serving members and not shareholders.
CHETRY: Pretty cool. All right, we'll check it out. Gerri Willis, thanks so much.
WILLIS: My pleasure.
ROBERTS: Coming up next, we are paging Dr. Gupta. New York is trying to keep people from drinking soda. And they have a very effective ad campaign there to gross you out, basically. There's the fat that you'll gain in year if you drink soda.
It's 42 minutes after the hour. (COMMERCIAL BREAK)
ROBERTS: Welcome back to the Most News in the Morning. 2009 going out with a bang. Take a look at this.
(BEGIN VIDEO CLIP)
CHETRY: Wow, nice implosion.
ROBERTS: Yes. That was a bridge. The Lake Champlain Bridge between West Addison, Vermont and Crown Point, New York is no more, as you see there. The 80-year-old bridge was deemed unsafe and demolished with 800 pounds of explosives on Monday. It's going to be rebuilt by the summer of 2011.
CHETRY: Those heading out to Lake Erie for some ice fishing could be forced to pay up if they need to be rescued. Authorities in Ohio say fishermen could be billed if they go out on the ice when the conditions are not safe. The decision comes after more than 100 people were rescued from the lake last winter.
ROBERTS: There could be a lot of people with ice underneath their boots in the next few days. Our Jacqui Jeras monitoring all of the extreme weather; she's at the Weather Center in Atlanta. Good morning Jacqui.
JERAS: Good morning guys. I would like to see them implement that rule by the way for people who drive through flood waters. It's one thing that drives me crazy.
By the way, if you're thinking about going out on the lake, the general rule is you need four inches of ice in order to be able to stand on it, and five inches or so for a snowmobile and about a foot for a small car.
Cold conditions all across the northeast today and the winds are just howling out there, and that's driving those lake-effect snow machines once again here across the northeast for today. The snowfall totals so far have really been pretty impressive over the last 24 hours, pushing a foot in Alden, in Buffalo, Cicero, Redfield around 10 inches and West Seneca at 8 inches of snow. Several more inches can be expected here today, may be a good two to five inches overall.
And the winds really strong in the teens and 20 miles per hour, and this is for sustained conditions. Gusts could be reaching 30 to 50 miles per hour today. That's going to drive your wind chill factor way down today. And look at the subzero conditions across the interior parts of the northeast. You are hovering into the upper single digits to the low teens here in the coastal areas.
And you're going to be hit in this area pretty steady throughout the day today. We have got one airport delay to tell you about. LaGuardia, 11 minutes, that's it. Nobody can complain about that, right? But it will likely reach an hour or so later on today because of the winds. Not just the New York metro but Boston, D.C. and Philly. Dallas and Houston are going to have some delays due to low clouds and fog as well as the snow pushing into the Dallas here.
Here you can see this developing along the 1-20 corridor right now. Of course, just rain for you into the Houston area. And this is going to be our storm system to watch over the next couple days, because it's going to head into the southeast and then ride its way on up the coast, and it could be a potentially be a pretty nasty nor'easter for a lot of people in the North East as we head into the New Year.
It looks a little bit over outdone on the map for me for me tomorrow. And most of this will hit in the afternoon. So not a big system yet, but once it gets (INAUDIBLE) by the end of the week, we think it could be a pretty decent show -- rain and snow -- both possibly mixed in and we'll continue to track that storm as it develops -- John and Kiran.
ROBERTS: All right. Jacqui thanks so much. Jacqui stay with us. We also want to show you these pictures; torrential rain causing massive flooding in parts of Australia's New South Wales. Parts of the country have received record rainfall in December. Take a look at that.
WILL: And also the Mayon Volcano in the Philippines may be ready to pop; scientists warning yesterday that a current lull in tremors could signal that a massive eruption is imminent. They also said, the current risk level, alert level 4 could stay that way for some time. So, we'll keep you posted.
So ahead we're paging Dr. Gupta with -- I don't know if you'd seen this ad campaign. We say a few bits and pieces of it this morning. It's pretty gross. It's trying to get you to stop drinking soda by showing you just how much fat you would gain in a year from drinking a ton of soda.
Sanjay Gupta has more.
(COMMERCIAL BREAK)
ROBERTS: Welcome back to the Most News in the Morning. We are paging Dr. Gupta. New York City's new anti-soda public service announcement may be probably the most disgusting commercial of all time. Don't say we didn't warn you. Dr. Sanjay Gupta shows us whether it's serving its purpose.
(BEGIN VIDEOTAPE)
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: It's the latest YouTube sensation. It's not a water-skiing squirrel or even a dancing baby, but a public service announcement about soda.
Some viewers may find this revolting, but New York City Health Commissioner Dr. Thomas Farley says it's starting to get peoples' attention.
DR. THOMAS FARLEY, HEALTH COMMISSIONER, NEW YORK CITY: We have an epidemic of obesity that we feel that we need to respond to. We wanted to communicate in the way that people understand and the visual images are the way that we communicate these days.
GUPTA: According to the ad, just one soda a day, about 100 calories, can add ten pounds to your waistline over the course of a year. And recent research from UCLA confirms the link saying that one soda per day puts you at 27 percent increased risk for obesity.
FARLEY: They are calories that people tend not to notice.
GUPTA: The American Beverage Association agrees that the hundreds of calories in sugary drinks can add up, but says there is a better way to educate people. In a statement posted on its Web site, the ABA says quote, "if the goal is to reduce obesity among New Yorkers, then this public education campaign should be based on fact, not simply sensationalized video that's inaccurately portrays our industry's products, products that are fat free.
They go on to say that the companies they represent offer low calorie and no calorie options and that losing weight is as simple as calories in, calories out.
Farley says people have known that for years, but they still don't get the point.
FARLEY: Most people have a very positive image of sugary sweet beverages. It's sort of treat to have it at the end of the day. So we want to drive home the idea these are a risk.
GUPTA: And with 200,000 views on YouTube, the video seems to be getting that point across. Dr. Sanjay Gupta, CNN, reporting.
(END VIDEOTAPE)
CHETRY: Yummy.
ROBERTS: Yes. I saw a story not too long ago about a guy who keeps a model of five pounds of fat in his refrigerator, and every time he goes into the fridge, he takes a look there is the five pounds of fat so he'd...
How many people -- what will happen to them sometimes is very effective.
CHETRY: Yes. And seeing five pounds of fat -- Oprah did it one time as well, and that's not cute.
ROBERTS: There's one for each thigh.
CHETRY: Exactly, just glue them on.
Well, if you're looking to lose some pounds as part of a New Year's resolution, but you don't want to give up fast food. Taco Bell may have your answer. Yes. Taco Bell with your drive through diet menu; it features 7 items from its most recent commercial. Its Fresco Menu with 9 grams of fat or less. So you're swapping out the cheese and sauces for a healthier fiesta salsa. I bet you, you could do the same thing with a big mac, scrape off the special sauce and put on some salsa.
ROBERTS: A little bit of salsa here. Maybe all of these fast- food chains can do that?
CHETRY: No, only Taco Bell can; only Taco Bell.
Speaking of awkward TV moments, Jeanne Moos is going to show us one in a moment.
ROBERTS: Stay with us.
(COMMERCIAL BREAK)
(AUDIO GAP)
CHETRY: ... live TV. Any mistake is out there for everyone to see and we'll admit it, every great once in a while and you really take the -- you have to really watch us like hawks because it happens so rarely we mess up.
ROBERTS: Yes, stay tuned for another 30 seconds you're bound to see one. As the year winds down, we want to look back at the best of the worst. Our Jeanne Moos brought us this report a while back but it was too good not to share with you again.
(BEGIN VIDEOTAPE)
JEANNE MOOS, CNN CORRESPONDENT: We never turn up our nose for news especially not at those wonderfully awkward moments.
CARRIE PREJEAN, FORMER MISS CALIFORNIA: Larry, you are being inappropriate. You really are, so I am not...
LARRY KING, CNN HOST, "LARRY KING LIVE": What? I am asking a question.
SEAN HANNITY, FOX NEWS ANCHOR: We screwed up.
MOOS: Some weeks have more than their share of awkward TV moments, thanks to the former Miss California, U.S.A. maybe you saw her getting miffed at Larry King and taking off her mike.
KING: Is she leaving because I asked what motivated the settlement? Did you hear the question?
PREJEAN: No, I can't hear you.
MOOS: I am answering what I can't hear.
PREJEAN: I'm about to leave your show.
KING: Who are you talking to? Hello.
MOOS: But we crown Carrie Prejean Miss Awkward Moment because she inspired awkward moments on more than one show.
JOY BEHAR, CO-HOST, "THE VIEW": And yet you say that you're a victim. I don't totally buy it.
PREJEAN: Did you see the attacks that I was under?
BARBARA WALTERS, CO-HOST, "THE VIEW": It's the best thing that happened to you.
BEHAR: I'm not worried about you Carrie.
MOOS: But our favorite awkward moment was Barbara Walters describing Prejean's x-rated video.
WALTERS: Are you alone doing whatever you were doing with yourself?
MOOS: What was Sean Hannity doing on Fox News, Jon Stewart wondered. Using video of a major rally two months ago to illustrate a smaller protest against health care reform.
JON STEWART, HOST, "THE DAILY SHOW": Not a cloud in the sky, the leaves have changed. All of a sudden the trees turned again and it's cloudy
MOOS: Trying to make the smaller rally seem bigger, said Stewart. Inadvertent mistake, said Hannity. But he apologized.
HANNITY: So Mr. Stewart, you were right. I want to thank you and all your writers for watching.
MOOS: CNN's "SITUATION ROOM" went to pot this week.
JESSICA YELLIN, CNN CORRESPONDENT: Wolf, would you know a marijuana plant if you saw one?
WOLF BLITZER, CNN ANCHOR, "SITUATION ROOM": I am not sure I would. I could smell it.
You could smell a marijuana Lou but you probably would not recognize a plant, am I right or wrong?
LOU DOBBS, FORMER CNN ANCHOR: Well, you are dead wrong.
MOOS: Certitude plus attitude, what a dude -- Lou, we are going to miss you.
DOBBS: This will be my last broadcast here on CNN.
From veteran leaving to cub arriving, the "Today Show" announced the winner of its kid reporter competition.
UNIDENTIFIED FEMALE: It's you. You won. You are today's kid show kid reporter winner. You're the winner Deirdra.
MOOS: If you are going to be a reporter, kid, you have to learn to fill dead air.
We said fill it, not kill it. Jeanne Moos, CNN, New York.
(END VIDEOTAPE)
ROBERTS: A delay there in the realization that you actually won.
CHETRY: Exactly. She was just saving it all up there to just screech it out at the end.
ROBERTS: There you are.
Continue the conversation on today's stories. Go to our blog at cnn.com/amFix. We'd like to hear what you have to say.
That's going to wrap it up for us. But we will be back again bright and early tomorrow morning.
CHETRY: Sure will. Meantime, here is "CNN NEWSROOM" with Heidi Collins.
